Sales Tax (Exemptions and Classifications) Amendment Act 1978

Legislation au C2004A01906 Not in force Act

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SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) AMENDMENT ACT 1978

No. 107 of 1978

An Act to amend the Sales Tax (Exemptions and Classifications) Act 1935, and for related purposes.

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Sales Tax (Exemptions and Classifications) Amendment Act 1978.

(2) The Sales Tax (Exemptions and Classifications) Act 1935 is in this Act referred to as the Principal Act.

Commencement

2. This Act shall be deemed to have come into operation on 26 May 1978.

3. The Principal Act is amended by inserting after section 6ab the following section:

Sales tax not payable on proportion of value of certain goods

“6ac. Notwithstanding anything contained in any Sales Tax Assessment Act, where, under by-laws made for the purposes of item 15 in Schedule 2 to the Customs Tariff, a proportion only of the value of goods to which that item applies is not liable to duties of Customs, sales tax is not payable on the equivalent proportion of the amount that is the sale value of the goods under the Sales Tax Assessment Act (No. 5) 1930.”.

First Schedule

4. (1) The First Schedule to the Principal Act is amended—

(a) by inserting “in this Schedule” after “item” in sub-paragraph (i) of paragraph (j) of the definition of “aids to manufacture”;

(b) by inserting after item 38 the following item:

“38a. Preparations—

(a) that are put up and sold for use as substances to be applied to the skin for the purpose of screening out solar ultra-violet rays; and

Nos. 1 to 9”;

(b) in respect of which there is in force a certificate given for the purposes of this item by the Director-General of Health, or by an officer appointed by him for the purpose, that certifies that the preparations are preparations that provide an acceptable level of protection from solar ultra-violet rays

 

(c) by omitting item 58 and substituting the following item:

“58. Imported goods consisting of overseas travel literature and other printed matter relating to overseas travel, being goods to which paragraph (d) of item 35 in Schedule 2 to the Customs Tariff applies

No. 5”;

(d) by omitting sub-item (2) of item 59 and substituting the following sub-item:

“(2) Imported goods consisting of calendars, catalogues, price lists or other printed matter, being goods to which paragraph (d) of item 35 in Schedule 2 to the Customs Tariff applies, but not including calendars, catalogues, price lists or printed matter designed to advertise the sale or hire of goods by, or the services of, any person in Australia

No. 5”;

 

(e) by omitting from item 69 “sub-item 49.11.2 in Part II of the First Schedule” and substituting “item 22, or paragraph (c) of item 27, in Schedule 2 “;

(f) by omitting from sub-item (3) of item 107 “goods to which paragraph 37.04.21, or sub-item 37.07.1, in Part II of the First Schedule to the Customs Tariff applies” and substituting “films that wholly or mainly depict or describe, or depict and describe, places outside Australia”;

(g) by omitting sub-item (1) of item 114 and substituting the following sub-item:

“(1) Goods imported by passengers or members of the crew of ships or aircraft, being goods to which item 15 or 16 in Schedule 2 to the Customs Tariff applies, but not including goods in respect of which, under by-laws made for the purposes of item 15 in that Schedule, a proportion only of the value of those goods is not liable to duties of Customs

No. 5”;

(h) by inserting after sub-item (3) of item 114b the following sub-item:

“(4) Imported goods to which item 11 in Schedule 2 to the Customs Tariff applies, being—

(a) the personal effects, furniture or household goods of members of the United States Forces, or of members of the civilian component, or of dependants of such members; or

No. 5”;

(b) motor vehicles for use by members of the United States Forces or by members of the civilian component

 

(j) by inserting after item 114b the following item:

“114c. Imported goods to which item 11 in Schedule 2 to the Customs Tariff applies, being—

(a) the personal effects, furniture or household goods of members of the Visiting Force of Papua New Guinea, or of members of the civilian component, or of dependants of such members; or

No. 5”;

(b) motor vehicles for use by members of the Visiting Force of Papua New Guinea or by members of the civilian component

 

For the purposes of this item, the expressions “Visiting Force”, “civilian component” and “dependant” have the same respective meanings as they have in the Agreement between Australia and Papua New Guinea regarding the Status of Forces of each State in the Territory of the other State signed on 26 January 1977

 

(k) by omitting item 145 and substituting the following item:

“145. Imported goods consisting of—

(a) goods the value of which is insubstantial, being goods to which paragraph (a) or (b) of item 35 in Schedule 2 to the Customs Tariff applies; or

No. 5”;

(b) samples of negligible value, being goods to which paragraph (c) of item 35 in Schedule 2 to the Customs Tariff applies

 

(m) by omitting from paragraph (a) of sub-item (3) of item 68 and from items 69a and 69b “the First Schedule” and substituting “Schedule 1”; and

(n) by omitting from items 70, 111a and 116 “Part I of the Second Schedule” (wherever occurring) and substituting “Schedule 2”.

(2) Where, on or after the day on which this Act is deemed to have come into operation but before the day on which this Act receives the Royal Assent, the Director-General of Health, or an officer appointed by him for the purpose, has given a certificate purporting to be for the purposes of item 38a in the First Schedule to the Principal Act as amended by sub-section (1), the certificate shall be, and shall be deemed to have been, as valid and effectual as it would have been if this Act had received the Royal Assent on the day on which the certificate was given.

Second Schedule

5. The Second Schedule is amended by adding at the end of items 20, 24 and 25 “, but not including goods to which item 38a in the First Schedule applies”.

Overview

The Sales Tax (Exemptions and Classifications) Amendment Act 1978 was enacted to amend the Sales Tax (Exemptions and Classifications) Act 1935 and address specific gaps in the sales tax exemptions and classifications for certain goods. This Act was passed by the Queen, with the authority of the Senate and the House of Representatives of the Commonwealth of Australia. The policy objective was to align sales tax exemptions and classifications with changes in customs duties, ensuring that the proportion of the value of goods exempt from customs duties is also exempt from sales tax. This amendment sought to streamline and simplify the tax regime by ensuring consistency between customs and sales tax liabilities for specific goods. The Act introduces amendments to the Sales Tax (Exemptions and Classifications) Act 1935, primarily through the insertion of new sections and the modification of existing ones in the First Schedule. These amendments include the exemption of sales tax on certain proportions of the value of goods that are exempt from customs duties, and the specification of new exemptions for items such as solar ultra-violet screening preparations, personal effects and household goods of members of the United States Forces and the Visiting Force of Papua New Guinea, and other specific goods. This legislative change aimed to refine the sales tax system to better reflect current economic and trade practices.

Scope and Application

The Sales Tax (Exemptions and Classifications) Amendment Act 1978 amends the Sales Tax (Exemptions and Classifications) Act 1935 to provide exemptions and classifications regarding sales tax on certain goods. This Act applies to individuals, entities, and transactions involving goods that fall under the specified classifications within the amended schedule, particularly those related to imported goods, personal effects, and household items. The geographic reach of this Act is national, applying throughout the Commonwealth of Australia, as it pertains to the classification and exemption of sales tax on goods imported into and within the country. The Act includes specific exemptions for certain imported goods, such as those for personal use by members of the United States Forces, the Visiting Force of Papua New Guinea, and their dependants, as well as goods that are subject to customs duties. The application of the Act can be extended or restricted through subordinate instruments, which may provide further detail or clarification on the application of the exemptions and classifications.

Key Provisions

The Sales Tax (Exemptions and Classifications) Amendment Act 1978 (C2004A01906) amends the Sales Tax (Exemptions and Classifications) Act 1935 (referred to as the Principal Act). This Act, which came into operation on 26 May 1978, introduces new exemptions and classifications for sales tax purposes. Section 3 of the Act inserts a new section 6ac into the Principal Act, which stipulates that if a proportion of the value of certain goods is exempt from customs duties under specific by-laws, then an equivalent proportion of the sales tax for those goods will also be exempt. This provision ensures that the sales tax burden aligns with the customs duties exemption. The Act imposes obligations on various parties to ensure compliance with the new tax classifications and exemptions. For instance, sellers and importers of goods must accurately determine whether their goods fall under the new exemptions and classify them accordingly for sales tax purposes. Additionally, the Director-General of Health and designated officers are tasked with issuing certificates for certain health-related goods, such as preparations used for sun protection, to validate their exemption status. Failure to comply with the provisions of this Act can result in civil and criminal consequences. While the specific penalties are not detailed in the Act, breaches of sales tax laws generally attract penalties that can include fines and, in severe cases, criminal charges. The precise penalties would be determined under the relevant sales tax legislation and other applicable laws. The Act also includes provisions in its First and Second Schedules, which list various items and their tax classifications. For example, the First Schedule now includes exemptions for goods such as preparations for solar protection, imported travel literature, and personal effects of United States Forces and Visiting Forces of Papua New Guinea. These amendments reflect a broader effort to fine-tune the tax exemptions to better align with the economic and social policies of the time. In summary, the Sales Tax (Exemptions and Classifications) Amendment Act 1978 introduces specific exemptions and classifications for sales tax, imposes compliance obligations on sellers and importers, and includes provisions for potential penalties for non-compliance. The detailed amendments to the First and Second Schedules further clarify the scope of these exemptions and ensure that the sales tax system is accurately reflecting the intended policy outcomes.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.